How to Use Financing to Sell More Equipment
In the world of commercial equipment sales, distributors face a myriad of challenges that can hinder their efforts to sell more machinery. From economic fluctuations to changing industry trends, navigating this landscape requires many things to go right for an equipment distributor to find large scale success. One significant hurdle that many distributors encounter is the financial barrier that customers face when purchasing expensive equipment. This is where having Sub-Prime lending relationships becomes a big difference maker separating the successful dealer, from the struggling dealers.
The Common Challenges of Commercial Construction Equipment Sales
1. High Costs:
Commercial construction equipment comes with hefty price tags, often reaching into the hundreds of thousands or even millions of dollars. Such high costs can deter potential buyers, especially smaller contractors or businesses with limited capital like start up companies. Having a lending relationship that can service both new business and tough credit customers is crucial to selling more equipment!
2. Economic Uncertainty:
The construction industry is sensitive to economic fluctuations. During periods of economic downturn, construction projects may be delayed or canceled, leading to decreased demand for equipment.
3. Competition:
The market for commercial construction equipment is highly competitive, with numerous distributors vying for the attention of buyers. Standing out in such a crowded field requires offering competitive pricing and value-added services like sub-prime business lending, ITIN customer financing, or specialty programs like seasonal and deferred payment programs.
4. Technological Advancements:
Advancements in technology continually shape the construction equipment landscape. Buyers may hesitate to invest in machinery that could quickly become outdated, preferring to wait for newer models with enhanced features. This challenge can be overcome by having a sub-prime lending source that offers equipment lease to own programs for customers of all credit types.
Ryzen Capital has Sub-Prime Programs, Non-Citizen Programs, and Specialty Programs available for customers of all credit types!
The Role of Equipment Financing and Business Loans
In the face of these challenges, having access to equipment financing and business loans can be a game-changer for commercial construction equipment distributors. Here’s how:
1. Overcoming Cost Barriers:
Equipment financing allows buyers to spread the cost of purchasing machinery over time, rather than paying the full amount upfront. This makes expensive equipment more accessible to a broader range of customers, including those with limited capital or poor credit history.
2. Mitigating Economic Risk:
During economic downturns, businesses may hesitate to invest in new equipment due to financial uncertainty. However, offering flexible financing options can incentivize customers to proceed with their purchases, mitigating the impact of economic fluctuations on sales.
3. Competitive Advantage:
By partnering with a quality subprime lending resource, distributors can differentiate themselves from competitors by offering tailored financing solutions to meet the diverse needs of their customers. This can help attract buyers who may have otherwise been deterred by financial or credit concerns.
4. Facilitating Technology Adoption:
Equipment financing enables customers to stay abreast of technological advancements without having to make large upfront investments. This encourages them to invest in the latest equipment, knowing that they can upgrade to newer models in the future with ease via lease structures and the like.
Conclusion
In the competitive landscape of commercial construction equipment sales, overcoming financial barriers is essential for driving growth and increasing market share. Access to equipment financing and business loans provides distributors with the tools they need to address the common obstacles they face and empower their customers to make confident purchasing decisions. By leveraging quality subprime lending resources, distributors can unlock new opportunities for selling more machinery and cementing their position as industry leaders.
Ryzen Capital offers programs for tough credit customers, ITIN or non-citizen customers, as well as specialty programs like seasonal or deferred payment programs. Give us a call today! 801.923.6100
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